Payback period and net present value, Financial Accounting

Payback Period and Net Present Value

XYZ Software, Inc., has the following mutually exclusive projects.

Year

Project A

Project B

0

 $

-9,960   

 $

-10,400   

1

 

6,800   

 

5,800   

2

 

4,100   

 

2,900   

3

 

2,700   

 

6,900   







Requirement 1:

(a) What is the payback period for Project A?

  Payback period                                 years

(b) What is the payback period for Project B? (Round your answer to 3 decimal places. (e.g., 32.16))

  Payback period                                 years

Requirement 2:

(a) What is the NPV for Project A assuming a discount rate of 14 percent? (Negative amount should be indicated by a minus sign. Do not include the dollar sign ($).

  Net present value         $

(b) What is the NPV for Project B assuming a discount rate of 14 percent? (Do not include the dollar sign ($). Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.

  Net present value         $

Posted Date: 2/15/2013 3:06:33 AM | Location : United States







Related Discussions:- Payback period and net present value, Assignment Help, Ask Question on Payback period and net present value, Get Answer, Expert's Help, Payback period and net present value Discussions

Write discussion on Payback period and net present value
Your posts are moderated
Related Questions
Enumerate the scope and utility of management accounting.

Below are excerpts from Safeway's 2010 Annual Report, including its Consolidated Balance Sheets, a portion of Note E, Lease Obligations, and Note H, Taxes on Income, from the Notes


What is the sales price of common stock when it was issued?

business is started with the objective of making profits but the conservatism concept says not to anticipate profit.... why so??

ACCOUNTS REQUIRED This can be summarized depending on the nature of the situation. In a receivership you may be required to prepare a receivers receipt and payments. In the pro

“Ledger is said to be the principal book entry and the transactions can even be directly entered into the ledger account.” Elaborate and explain why journal is necessary.

a,b,c carried on business and their profit and loss ratio 3:4:5.they decided dissolve the partnership as on 1st july,2011.the following balance sheet..... creditors-10000 loan A/c-

General limitations of Net Present Value when applied to investment appraisal NPV is a generally used technique employed in investment appraisal but is subject to a number of r

Sales= 4,500,000 Min required return= 15% Avg Operating assets= 1,800,00 Residual Income= 90,000 !) Whats the company's return on investments? Please show work so I can see how